McGregor is hit with fine over forgery

THE City watchdog yesterday banned and fined the former finance director of Royal Liver Assurance for a “dishonest, deliberate and sustained course of misconduct” which included forging the chief executive’s signature.

George McGregor’s fine would have been £1million but it was slashed by the Financial Services Authority to a level that he could afford to pay without going into bankruptcy.

The punishment resulted from an unauthorised contract he signed to help a former employee who did not receive a bonus McGregor felt he should have. To make up the money, McGregor decided to channel funds to two firms controlled by the ex-staff member as fees for investment advice.

The contract was intended to be worth £360,000 a quarter for five quarters but a misplaced decimal point meant the finance director got his sums wrong by a factor of 10 and an initial invoice for £3.6million duly arrived. McGregor, only authorised to sign off cheques of up to £500,000, forged the chief executive’s signature to make the payment. It was spotted by internal auditors.

City watchdog bans and fines former finance director of Royal Liver Assurance

The FSA said McGregor gained no financial benefit from the deal. Police will not press charges, although RLA’s owner, Royal London, is keeping its options open.